Apr 9 2018

Dated: 04/09/2018

Views: 70

US Housing Market Still In 'Buy Territory'!

US Housing Market Still In ‘Buy Territory’! | Keeping Current Matters

According to the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy territory, supporting the belief that housing markets across the country remain a sound investment.

The BH&J Index is a quarterly report that attempts to answer the question:

In today’s housing market, is it better to rent or buy a home?

The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.” 

While 13 of the 23 metropolitan markets examined moved further into buy territory, markets like Dallas, Denver, and Houston are currently deep into rent territory. Due to a lack of inventory, the home prices in these areas have increased by 6.7%6.3%, and 5.3% respectively from a year ago.

According to Eli Beracha, Ph.D., Co-Creator of the index, home prices will begin to return to more normal levels.

Our data indicates that prices are above their 40-year trend but not significantly so as they were in 2007. Rather than a crash, I anticipate slower growth in prices accompanied by longer marketing times for sellers and increasing inventories, which should bring prices back in conjunction with their 40-year trend.”

Bottom Line

The majority of the country is strongly in buy territory. Buying a home makes sense socially and financially, as rents are predicted to increase substantially in the next year. Protect yourself from rising rents by locking in your housing cost with a mortgage payment now.

To Find Out More About the Study: The BH&J Index and other FAU real estate activities are sponsored by Investments Limited of Boca Raton. The BH&J Index is published quarterly and is available online at http://business.fau.edu/buyvsrent.

Want to Advertise on this Site?

Latest Blog Posts

Economic Storm

HOUSING WILL NOT FALL VICTIM TO NEXT ECONOMIC STORM Some experts are calling for a slowdown in the economy later this year and most economists have predicted that the next

Read More

Keeping Your House Cool Without AC

How to Keep Your House Cool Without AC Want summer comfort but hate the AC? Follow these tips on how to keep your house cool without frosty air conditioning.You don’t have to switch on the air

Read More

12756 Sierra Creek Drive Price Improvement

View the TourPRICE IMPROVEMENT | MOTIVATED SELLER'S |12756 SIERRA CREEK DR RVSD

Read More

2 0 1 8 KITCHEN TRENDS

9 TOP TRENDS IN KITCHEN DESIGN FOR 2018Decades ago, the kitchen was hidden in the back of the house. It was a place where meals were prepared and dirty dishes were washed. Fast forward to

Read More